Applebee's And IHOP's SSS Growth Expectations Dwindle, Analyst Downgrades Dine Brands Global
Portfolio Pulse from Lekha Gupta
Wedbush analyst Nick Setyan downgraded Dine Brands Global Inc (NYSE:DIN) to Neutral from Outperform and reduced the price target to $65 from $80. Setyan is bearish on Applebee's and IHOP's below-consensus same-store sales (SSS) growth and lowered their growth estimates for Q2 and future years. The analyst also sees no sign of meaningful growth in share repurchases and believes management is prioritizing rebuilding cash.
June 14, 2023 | 6:56 pm
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NEGATIVE IMPACT
Dine Brands Global downgraded to Neutral from Outperform by Wedbush analyst, with a reduced price target of $65 from $80, due to lower same-store sales growth expectations for Applebee's and IHOP.
The downgrade and reduced price target by Wedbush analyst Nick Setyan are based on lower same-store sales growth expectations for Applebee's and IHOP, which are owned by Dine Brands Global. This negative outlook on the company's key brands is likely to have a short-term negative impact on the stock price, as evidenced by the 4.89% drop in the stock price on the last check Wednesday.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100